---### Loan Repayment and Interest Calculation#### Problem Statement:If a person borrows $2900.00 and, after 9 months, pays off the loan in the amount of $3008.75, what per annum rate of interest was charged? \[ \boxed{} \]$\% \text{ (Round to the nearest tenth as needed.)}$#### Options:- [ ] View an example - [ ] Textbook---This problem requires you to determine the annual interest rate charged on a loan. The principal amount borrowed is $2900.00, and the total amount paid after 9 months is $3008.75. Use the simple interest formula to find the annual interest rate.The simple interest formula is:\[ I = P \times r \times t \]Where:- $ I $ is the interest- $ P $ is the principal amount- $ r $ is the annual interest rate (as a decimal)- $ t $ is the time the money is borrowed for, in yearsYou need to rearrange the formula to solve for $ r $:\[ r = \frac{I}{P \times t} \]First, calculate the interest ($ I $):\[ I = \text{Total Amount Paid} - \text{Principal} \]\[ I = 3008.75 - 2900.00 \]\[ I = 108.75 \]Since the loan is paid off after 9 months, convert this time period to years:\[ t = \frac{9}{12} = 0.75 \text{ years} \]Now, substitute the known values into the rearranged formula:\[ r = \frac{108.75}{2900 \times 0.75} \]Finally, convert the rate from a decimal to a percentage by multiplying by 100 and round to the nearest tenth:\[ r (\%) = r \times 100 \]Make sure to follow these steps to find the correct annual interest rate.

Answered: Image /qna-images/answer/a293e262-bd13-439a-afc4-a6a56e6391e6.jpg

Answered: If a person borrows $2900,00 and, after…

If a person borrows $2900,00 and, after 9 months, pays off the loan in the amount of $3008.75, what per annum rate of interest was charged? % (Round to the nearest tenth as needed.)

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Similar questions

For a loan of $1,250 with interest of $50 charged in the first month, calculate the equivalent compound effective annual interest rate.
Mr. Charles, a rich businessman, divided his wealth of $170 million between his two sons, Jason and Bobby, equally. Jason deposited the money in an account that offered simple interest of 11% per year. Bobby deposited the money in a bank that offered an interest of 10.5% compounded annually. a.) Who would be richer at the end of 3 years, Bobby or Jason? b.) How much more money would the richer brother have? (Make sure and write your answer in millions)
You deposit $400 each month into an account earning 4% interest compounded monthly.a) How much will you have in the account in 35 years?
Determine the amount due if $8000 is borrowed for 6 years at 4.7% compounded annually.
The monthly payments on a 10-year loan of $35,000 at 6.1% interest are $390.33. (a) What is the total amount paid over the 10 years?$ (b) What is the total amount of interest paid?
Vincent had to make payments of $1,125 every 6 months to settle a $23,000 loan that he received at 5.12% compounded semi-annually. a. How long did it take to settle the loan? years months Express the answer in years and months, rounded up to the next month
In order to accumulate enough money for a down payment on a house, a couple deposits $351 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years? What is the amount in the account after 5 years? $ (Round to the nearest cent as needed.)